Rupiah stronger as Imlek draws closer

The rupiah still has the potential to strengthen today following the strengthening of other Southeast Asian currencies against the US dollar.

Jakarta (ANTARA) - The Indonesian rupiah appreciated against the US dollar in the Jakarta interbank market ahead of the Chinese Lunar New Year, or Imlek, on the weekend.

The rupiah climbed 41 points, or 0.3 percent, to reach Rp13,598 per US dollar on Friday at 10:05 a.m. local time in comparison with the earlier close of Rp13,639 per US dollar.

"The rupiah still has potential to strengthen today after other Southeast Asian currencies appreciated against the US dollar," chief researcher of Monex Investindo Futures, Ariston Tjendra, remarked in Jakarta on Friday

Tjendra opined that concerns easing over the impact of the coronavirus will support the rupiah to strengthen.

"However, the market still remains alert to the outbreak (of the virus), especially if it spreads," he pointed out.

Moreover, the low yield on 10-year US bonds has aided in strengthening the rupiah against the US dollar, he noted.

The yield currently stands at 1.74 percent after touching 1.71 percent on Thursday, the lowest level since December 5, 2019.

Tjendra has forecast the rupiah to hover in the range of Rp13,600 to Rp13,670 per US dollar on Friday.

According to the Bank Indonesia mid-rate on Friday, the rupiah weakened to Rp13,632 per US dollar, from Rp13,626 per US dollar earlier.

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